Chinese trade balance turns negative for first time in six years

13 Apr '11

2 min read

China registered a deficit of US $1.02 billion in its foreign trade in the first quarter of this year. This fact was revealed by China General Administration of Customs.

Though China's exports and imports registered a growth of nearly 30 percent in the first quarter, it was the first time that China witnessed a trade deficit in any quarter in the last six years.

As per data released by China Customs, China's total foreign trade was worth US $800.3 billion in the first quarter this year, recording an increase of 29.5 percent, year on year.

Exports amounted to US $399.64 billion while imports fetched US $400.66 billion. China's exports jumped by 26.5 percent, while imports registered an increase of 32.6 percent for the same period.

In March, China recorded an increase of 35.8 percent in exports, delivering goods worth US $152.2 billion. On the import front, it spent US $152.06 billion, 27.3 percent more compared to March of the previous year.

Analyzing China's foreign trade, researcher Li Jian points out a basic balance between its imports and exports. Experts believe that this basic balance will effectively alleviate the pressure of RMB appreciation.

China has implemented a new policy to stabilize exports and expand imports and due to this policy, China has achieved a basic balance between imports and exports. Li works with International Trade and Economic Cooperation Academe under the Ministry of Commerce.

Fibre2fashion News Desk - China

More Textiles News - China...